The NSW Government’s exit tax is hurting thousands of property investors across the Hunter valley.
ATO figures obtained by the Property Council show that the Hunter valley region is home to almost 30,000 property investors.
Across the region, the suburbs of Charlestown, Belmont, Wallsend, Toronto and The Junction are among the top five postcodes where investors live. The exit tax affects over 24,000 people living in these suburbs alone.
Conservative estimates suggest that NSW is home to half a million property investors in total.
NSW executive director Ken Morrison said the Government’s exit tax was hurting ordinary Australians who had worked hard to secure their financial future.
“Vendor duty is not a rich person’s tax. It is a tax on ordinary people who have worked hard to get a foothold into the property market to secure their future or fund their retirement.
“Despite the rhetoric, vendor duty is not even a tax on profits; it’s a tax paid on top of the sale price and it can be paid regardless of whether a profit is made.”
Mr Morrison said that the exit tax was a big revenue gamble which is not paying off and should be abandoned immediately.
“Vendor tax is a failure; it’s not meeting its revenue target, it’s driving investment interstate and its hurting thousands of ordinary people,” Mr Morrison said.
“We’ve called on the new Treasurer to take a fresh look at this tax and use the May state budget to end what has become a failed tax experiment.”
Mr Morrison said NSW was not in a fiscal crisis and did not need to hang on to this harmful tax.
“The state is on track to record a budget surplus of $1.4 billion in two years.
“NSW and the Hunter in particular would be better off without this failed tax.”
A chart illustrating the top twenty Hunter suburbs where most investors live is attached.
Ken Morrison, NSW Executive Director, 0412 233 715 or 02 9336 6906